Social media plays an important role in promoting any ICO, both good and bad. It is easy to fall in love with the FUD (fear, uncertainty, and doubt) or also with the FOMO (fear of getting lost). All social media posts and articles should be taken with a pinch of salt. You should never use social media just to interfere with your judgment. However, it plays an important role in the decision-making process. It is important for any ICO to attract attention on social media, but at the same time be aware of the obvious manipulation that may be “pumping” or “dumping” the project. It is recommended that you start by looking at the official social media posts of the projects, such as your own page in Facebook, Twitter, YouTube, Instagram, and Telegram group. Once you feel comfortable and understand the project enough, so as not to get carried away by unofficial posts, you can go to other social media sites and see what the community has to say about your new-found ICO. Don’t forget to search for articles in the likes of Medium, Steemit and also forums like BitCoinTalk and Reddit.
Sometimes you need to trust instinct. If you’re feeling good about an ICO and all the other details add up, like a good team, a great idea, and a proper roadmap, you shouldn’t be afraid to invest in a project you strongly believe in. Just be careful and be sure to research and try to remove the emotion from your decision.
Softcover, hardcover, and no cover
Softcover: – the softcover. It is the minimum amount required for the project to progress. If a soft limit is not reached, most projects will be closed and the capital will be returned to investors. Always note how the softcover progresses. If it can’t seem to be reached, you’d better wait for the last days of the ICO or research a different project. The softcover should form an important part of your research.
Hard cap: Hard cap is the maximum amount of capital that a project intends to raise. Most projects will stop raising additional funds once the ceiling is reached. Today we see many ICOs with large hard caps that can be difficult to reach. The maximum limit is an important factor when the ICO review is directly related to the supply and initial demand of the token in which it invests. Always find out what will happen to the leftover tokens if the maximum limit is not reached. In the event that they are ‘burned’, this may increase the value of the tokens as the supply will decrease. Some ICOs will redistribute leftover tokens to investors, this may have the adverse effect of decreasing value as supply increases. If you find a project that seems to be struggling to meet its cap and you can confirm that the surplus token will be burned, it may be worth your investment because the token burning process potentially increases the value of the tokens sold. Similarly, if the tokens are redistributed in excess, it may not be worth investing in them, so always discover and understand what will happen to the leftover tokens.
Unlimited: – Not all ICOs have a limit. Where limit ICOs offer the benefit of a tangible goal, limitless ICOs have no limits and are open during the ICO time period. Capless ICOs collect as much as they can. The benefit of this is that all investors can participate and invest as much as they wish according to individual investment limits. One downside to a limitless ICO is that there could be an excessive number of tokens and token holders leading to uncertainty regarding project longevity and token value.
Bonuses and referrals
Many ICOs offer incentives to potential and existing investors. These can be in the form of discounts, bonuses, and referral schemes that offer additional tokens as commission.
Make sure you understand what offers are available with your chosen ICO, as this could affect the price of the token you are buying. In some cases, massive bonuses are offered towards the end of an ICO, which while it may help reach the ceiling, is at risk of lowering the value of the token and also annoying existing investors who didn’t receive such an attractive bonus, if there are any
Don’t be afraid to ask questions to reduce any doubts or to verify the facts.
If an ICO is worth your investment, they will take the time to help you on your journey.
You must combine many facets before judging any ICO, including (but not limited to) the ICO team, product, roadmap, caps, social media, ICO review sites, scope, and ROI.
It’s a lot of work, so get ready. Never jump to the back of view or hype and always make your own mind up.
There is a plethora of information out there regarding ICOs both good and bad.
As well as using social media and other public forums, you can also use websites that are dedicated to reviewing ICOs. These generally vet all the reviewers in the team and generally provide more reliable information when compared to other avenues of research.